- LQ45 & IDX 30 UPDATE: LQ45 Add ,IDX30 Add:
- Bank Indonesia intervention in Bonds DNDF FX
- FDI: Hyundai to invest USD2bn in ID
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New LQ45 List
- IN: , ACES
- OUT:
New IDX30:
- IN: MNCN
- OUT: SRIL
***Both changes effective end of day this Friday, 31 Jan***
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Bank Indonesia Intervening in Bonds, DNDF , FX for IDR Stability
Intervention in bonds, forex and domestic non-deliverable forwards markets aim to maintain exchange rate stability, according to Nanang Hendarsah, executive director for monetary management at the central bank (Bloomberg).
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Market downturn? Is it to continue or is it to rebound?
January 2020 has been an eventful months I reckon.
- US-Iran Tension
- Severe 1st January 2020 Flooding in Jakarta which caused black-out that turned down Economic Engine.
- Crack down of problematic Insurance and Asset management continues and adversely affect Indonesia Market Sentiment.
On the other side, all macros are actually in favor of Economy:
- Strong IDR currency
- This gives more room for Bank Indonesia to have further policy rate cut
- More and more Foreign Direct Investment ("FDI") is coming.
- Labor Law Reform and Investment Friendly Policy are coming to our way
Market Cash Level is kind-of high. What's the implication? Bottom Fishing now? Or is it too early?
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: FY19 results: in-line, improvement in asset quality will secure FY20 outlook
: FY19 results: in-line, strong PPOP was due to robust growth in fee income
: FY19 result was in-line despite higher provision in 4Q19 + Expect DOUBLE digit Earnings growth in FY20
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Snippets
aims for Rp50tr of new contracts in 2020
targets new contract achievement of Rp45-50tr in 2020, a 20-25% over 2019. The new contract in 2020 will be focused on infrastructure projects, including toll roads, dams, and transmission projects. It also budgets a total capex of Rp25-28tr in 2020 vs. 2019's realization of Rp22tr. (Kontan)
Nestle invests US$100mn for plant expansion
PT Nestle Indonesia Invests US$100mn for plant expansion. This investment will raise production capacity from 620,000 tons p.a. to 775,000 tons p.a., up 25 percent. PT Nestle Indonesia expansion includes three factories located in Karawang, Kejayan and Panjang. PT Nestle Indonesia produces its 'Milo' drink at Karawang factory, 'Bear Brand' at Kejayan (East Java) factory, and its cooking spices product 'Maggi' at Panjang (Lampung) factory. (Kontan)
Hyundai to invest up to US$2bn on Indonesia automotive sector
Hyundai is planning to add another US$500mn to expand their business network after previously having committed to invest US$1.5bn to build factory in Cikarang. Hyundai aims to have 100 dealers in 2021 from 47 dealers currently. It also partners up with Grab to supply Hyundai IONIC for the EV fleet. On another note, Toyota also plan to invest Rp28.3tr on the sector as well. (Investor Daily)
Sales commentary is not a product of research
Sumber : IPS